BOISE -- The Idaho Land Board voted to boost the rent paid on hundreds of state-owned cabin lots on the shores of Payette and Priest Lakes. That has many of those leasing there upset.
The lawyer representing the lessees says it's possible his clients will challenge this increase in court.
The board voted 3 to 2 to raise rents about 54 percent over the next five years.
The land these cabins sit on is the center of the issue.
The state-owned lots line the shores of Payette and Priest Lakes.
On Tuesday, the State Land Board voted to raise the rent about 54 percent over the next five years. And some say doing this will make it unaffordable for those who lease the land. The Land Board however has a mandate to maximize the income for the beneficiaries, in this case Idaho public schools.
"Remember this board has frozen rents the last three years in Payette and the last two years in Priest, so it's time. Even though this economy is horrible, it's time to raise those rents," said Secretary of State Ben Ysursa.
The board voted 3-2 to raise rents starting in 2011. State Controller Donna Jones and Attorney General Lawrence Wasden voted against the decision.
"In my view the motion that was put forward did not fulfill our constitutional duty to obtain the maximum long-term return. We have a fiduciary duty to the beneficiaries to be prudent investors," said Wasden.
The 521 cabin sites should raise an estimated $6.6 million in annual revenue for schools, up from $4.3 million under the existing terms. Critics are threatening to challenge the higher rates in court. Chuck Lempesis is the attorney representing lessees on Priest Lake.
"I am not surprised but I am sorely disappointed. And that is not to cast good intentions on the Land Board. I think this is a difficult and tractable problem," said Lempesis,
Lempesis says this decision may force him to advise his clients to sue.
Ysursa says that's something he expects.
"I would not be surprised to see some litigation somewhere down the line," said Ysursa.
The board also approved a compromise plan on premium rents, paid at the time a cabin changes ownership.
Even though the board increased the leases, they did decide last month the best interest of the state is to sell the land to private owners, but not right away.
The Idaho Land Board will spend the next year hashing out the best way to sell the land.
